LMX Theory

According to this theory, leaders form different kinds of relationships with various groups of subordinates. In-group: This group is favored by the leader. Members of in-group receive considerably more attention from the leader and have more access to the organizational resources. Out-Group: These individuals are disfavored by the leader. As such, they receive fewer valued resources from their leaders. LMX and Nature of work- As seen from the table the correlation value is very less i.e. 0.094 which implies that the kind of relationship a leader forms with his /her subordinates in case of Jindal Steel is independent of the kind of work given to them. LMX and Organizational tenure –A slightly higher value we understand that it benifits to be a part of the in-group and the people are likely to stay in the organization longer. LMX and trust in organization- This ratio is very high which indicates that Jindal Steel the kind of relationship formed by the leader with his/her subordinates significantly affects their level of trust in the organization. The members of the in-group owing to the greater attention received by their leaders exhibit higher levels of trust in the company. LMX and Gender- The evidence for the LMX theory states that leaders and followers of the same gender tend to have closer relationships than those of different genders. But, in this case, a lower value of correlation (0.182) indicates that the relationship between the leader and follower is independent of gender i.e. both men and women are equally favoured in this organization. LMX and Job Satisfaction- A high value of correlation (0.99) between this two factors supports the theory that followers of the in-group have higher performance ratings, engage in more helping or ‘citizenship’ behaviours at work and report greater satisfaction with their superior.

They make sure that the rules and code of conductare enforced.99) means that ethical leadership is responsible for a high degree of conscientiousness. dependent.33). and use their social power to serve the greater good instead of self-serving interests. EL and trust in organization. EL and Procedural Justice. Leaders who are ethical demonstrate a level of integrity that is important for stimulating a sense of leader trustworthiness.99) implies that the employees at Jindal are satisfied with their job as their leaders have strong ethics.Ethical Leadership Ethical leadership is leadership that is involved in leading in a manner that respects the rights and dignity of others. Ethical leaders assist followers in gaining a sense of personal competence that allows them to be self-sufficient by encouraging and empowering them. EL and Conscientiousness. Individual values and beliefs impact the ethical decisions of leaders. Ethical leaders are responsible.A high value for correlation (0. A high value of correlation (0. EL and Job Satisfaction.The value of correlation obtained is high(0. . In ethical leadership it is important for the leader to consider how his or her decisions impact others. Jindal Power has a high value of correlation (0. which is important for followers to accept the vision of the leader. and also aware of how their decisions impact others.Leaders who are ethical are people-oriented.Leaders who are ethical not only have their own set of values and beliefs but also follow the organization’s core values in every action that they take.For Jindal Steel. Ethical Leadership and Distributive Justice. the value of the correlation between this two parameters is very low(-0. This implies that there is no relation between ethical leadership and the fairness of the processes involved in decision making.969) which indicates that leaders who are ethical believe in fair and equal allocation of goods and resources to all the members of the team.9855) reiterating the fact that ethical leaders result in an increased level of trust among the employees in the organization. It means that though the leaders may be ethical there is very little or no transparency in the conflict resolving processes in the company. persistent and organized.

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